In January 2020, when the world began to learn about COVID-19, many market observers predicted a difficult year for Asia. While China is the only G20 country considered by the Organization for Economic Co-operation and Development (OECD) to have a GDP increase by 2020 as the “first in, first out” of COVID-19.
In contrast, Germany’s economy is expected to shrink 5.5% and Britain’s 11.2%. Among the G20 countries, excluding China, South Korea and Indonesia, their gross domestic product (GDP) is expected to decline by 1.1% and 2.4%, respectively.
There are an estimated 4.3 billion people living across Asia, of which 1.4 billion are Chinese. With the world’s largest number of Internet users, China produces, collects and analyzes data that drive the rapid adoption of next-generation technologies in China and the forerunners of 5G, artificial intelligence, mobility, FinTech and other industries 4.0 both speed and scale. While the continued decline between the US and China is complex and challenging, we expect it to unlock more investment opportunities in the future.
The US economy is expected to recover by mid-2021. Very few countries can benefit from the US recovery, as Americans have newly saved $ 2 trillion since February, with about 10% of GDP waiting to be spent. Over the past decade, China has grown its gross domestic product, surpassing Japan to become the world’s second largest economy. However, per capita GDP in China is still one-sixth of the United States and a quarter of Japan.
Rising incomes and more affluent consumers in China are expected to lead to an increase in demand for high-quality goods and services. China’s healthcare market is growing rapidly, with China’s healthcare sector expected to be worth $ 1.7 trillion by 2023 and outpacing the economy as a whole. Doctor’s supply throughout the medical field. To meet this need will require additional investment and innovation.
Apart from China, investors should focus on ASEAN-6 countries; Singapore, Malaysia, Thailand, Vietnam, Indonesia and Philippines. ASEAN has a population of over 650 million and is the third largest in the world, and its GDP has doubled in the last decade to $ 3.1 trillion. The world’s fifth largest economy.
We believe that Southeast Asia is potentially technologically advanced, reflecting China’s rapid economic growth during the early part of this century. China assumes the role of the United States in the global economy and with Southeast Asia entering a golden age of population growth.